Tag Archives: ECB

ECB cuts to 2%

The ECB reduced its base interest rate to 2% yesterday in a move that was widely expected by markets. A volatile day of trading saw Bank of America shares lose over 20% and the London FTSE 100 also closed with significant losses. Consumer inflation and industrial production figures from the US are likely to be the major market movers today.
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ECB Decision Due

The ECB is under pressure to reduce the cost of borrowing today following a sharp reduction in industrial production in the Eurozone. The Euro is weaker this morning ahead of the decision and the Dollar has been supported overnight by underlying bearish market trends. Continue reading

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Pound hits Record Low

The Pound sunk to a record low against the Euro yesterday of 1.1385, the lowest since the Euro began, after the NISER announced an economic contraction of 1% in the 3 months to November. The OECD has reported the global recession could be longer and deeper than originally thought with the UK being one of the worst economies hit. Continue reading

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Euro, Sterling Recover

The Pound and Euro have recovered from very low levels last Thursday following interest rate decisions from their respective central banks. Rising unemployment on ‘non-farm Friday’ in the US sent the Dollar lower but markets have gained ground this morning, buoyed by Obama’s announcement of increased government spending to stave off recession in the US. Continue reading

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Bank Cuts to 2%

Interest rate cuts yesterday forced the Pound to an historic low against the Euro as the Bank of England reduced rates to their lowest level in 57 years. The Bank’s base rate was lowered by 1%, while the ECB reduced rates by 0.75% in a move that was widely expected by markets. Global equities are lower this morning ahead of the publication of US employment figures later in the day. Continue reading

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